FSB calls for VAT breaks

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A temporary break from VAT should be granted to the tourism and construction industries to boost the economy, the Federation of Small Businesses (FSB) argued yesterday. VAT should be cut to five per cent for a year in the two sectors, the FSB said. “Consumer demand is a large barrier to economic growth so a VAT cut would encourage people to spend in these areas,” a spokesperson said. Morale among small businesses was down in the second quarter, compared to the beginning of the year, the FSB’s latest confidence survey has found.